Mentioned:
One of the giants of the precious metals royalty and streaming business is putting up billions for silver production. And they’re making history in the process.
What’s happening:
- Wheaton Precious Metals (NYSE: WPM) has formed a new multi billion dollar streaming deal with BHP (NYSE: BHP) for silver production
By the numbers:
- Wheaton Precious Metals will pay BHP $4.3B USD upfront as part of the new deal in exchange for 33.75% of the silver produced from the Antamina Mine located in Peru
- BHP will deliver 100M ounces of silver to Wheaton Precious Metals and then reduce their total supply to 22.5% from the Antamina Mine
Why it matters:
- The new agreement between Wheaton Precious Metals and BHP is the single largest upfront payment for a precious metals streaming deal ever
Going deeper:
- Wheaton Precious Metals previously entered into a deal with Glencore for a stream on the Antamina Mine and will now own 67.5% of all the silver produced from the Antamina Mine after their deal with BHP
